- Intel lays off 15,000 employees.
- AI boom eludes chip giant.
- Cost-cutting measures implemented.
Intel announced a massive layoff of 15,000 employees, representing over 15% of its workforce.
The move is part of a broader plan to slash $10 billion in spending by 2025, following disappointing second-quarter earnings and a gloomy outlook.
Missing the AI train
CEO Pat Gelsinger acknowledged Intel’s failure to fully capitalize on the AI boom, unlike competitors such as Nvidia.
The company’s annual revenues plummeted by $24 billion between 2020 and 2023, despite a 10% workforce increase during the same period.
In addition to layoffs, Intel is offering a voluntary departure program and enhanced retirement options to eligible employees.
Intel is also suspending its shareholder dividend starting Q4 2024, bracing for what it expects to be a challenging second half of the year.
